The struggle by Nigeria to provide adequate power supply to
industrial zones, as well as, small and medium-sized enterprises (SMEs) seems to be bearing fruits especially after the government has just
cemented a US$350m deal with General Electric (GE) to support the
construction of small-scale power projects across the West African country.
The
deal which was sealed over the weekend was signed by the Industry,
Trade and Investment Minister Olusegun Aganga and his counterpart of
Power ,Chinedu Nebo on behalf of the Nigerian government while the GE
Global Chairman ,Jeff Immelt and the Stanbic IBTC CEO, Sola David-Borha
signed on behalf of their organisations. The fund would be managed by
Stanbic IBTC Nigeria.
“Today,
we are signing the US$350m financing deal for small-scaled power
projects in Nigeria. These projects are quicker to do because they can
be accomplished within one year. What has happened today is the kind of
initiative that we need to drive our economy in terms of providing power
to our industrial zones across the country, especially in places like
Kano where there are big textile industries, where the cost of
production is not as competitive as it should be due to the lack of
uninterrupted power supply,” Minister Aganga told local reporters during
the signing ceremony.
“Therefore,
I am much more excited than anyone else because this initiative is
aimed at financing a critical sector that will be a catalyst for our
country's economic development because it will not only support our SMEs
and our Industrial Revolution Plan. Finance is a big constraint for
infrastructural development in Nigeria. So, having this in place will
address one of the enablers to growing the power sector,” he added.
The
Industry, Trade and Investment Minister said the interesting thing is
that GE is not looking at investing in the power sector alone, but they
are also committed to investing in locomotive assembly, establishment of
health care and diagnostic centres, and enterprise development. “This
is why I regard our partnership with GE as a productive
Country-to-Company partnership,” he added.
For
the GE Global Chairman Jeff Immelt; he is very happy “working with the
Nigerian government and Stanbic IBTC in terms of what is needed in terms
of debt and equity financing that will allow the sector to accelerate.”
SMEs
have been fully recognised by the Nigerian government and development
experts as the main engine of economic growth and a major factor in
promoting private sector development and partnership.
“When
our SMEs grow, more jobs will be created for our youth. Therefore, in
2014, this Administration will focus strongly on implementing the
Nigeria Enterprise Development Programme (Nedep) to address the needs of
small businesses,” Nigerian President Goodluck Jonathan promised in his
New Year address on Dec 31 last year.
Assuredly
speaking, Jonathan said Nigeria’s SMEs will be the bedrock of Nigeria’s
industrialisation. “We have about 17 million registered SMEs, and they
employ over 32 million Nigerians,” he revealed.
The
new deal with GE is only part of government’s promise to help SMEs with
access to affordable finance, business development services, and youth
training.
By Valentine Mulango
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